The Securities and Exchange Board of India (SEBI) is set to hold a board meeting on Monday to discuss several key regulatory proposals. This will be the fifth board meeting chaired by SEBI Chairman Tuhin Kanta Pandey since he took office on March 1, 2025.
FPI Settlement Reform
The headline proposal would allow foreign portfolio investors (FPIs) to net funds for same-day cash market trades, rather than settling each transaction individually. Currently, FPIs must fund every purchase separately, even if they've made sales on the same day. The proposed change would let them use same-day sale proceeds to offset purchase obligations — reducing transaction costs and minimising forex-related expenses, particularly on index rebalancing days.
Intermediary Reforms
The board will also review an overhaul of the "fit and proper person" criteria for market intermediaries. Key changes include ensuring that only a final winding-up order — not merely the initiation of proceedings — disqualifies a person, and explicitly codifying the right to a hearing in the rules to remove procedural ambiguity.
Other Items on the Agenda
The board will also take up ease-of-doing-business proposals for REITs and InvITs, and discuss a report by a high-level panel on conflict of interest and transparency. The panel has proposed greater disclosure norms and a zero-tolerance approach to conflicts of interest among senior SEBI officials.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal, regulatory, or investment advice. Readers are advised to refer to official SEBI circulars and consult a qualified professional for guidance on regulatory matters.
